XRP, Defends $1.24 Three Times in Two Days...Possibility of Reclaiming $1.3?

▲ XRP

XRP has attracted buying interest three times at $1.24 in two days, establishing itself as a key support level.

According to The Crypto Basic, a cryptocurrency specialized media outlet, on November 2 (local time), whenever XRP approached $1.24, buyers stepped in to absorb selling pressure and push the price back up. This repeated reaction indicates strong demand around $1.24 even as XRP faces pressure from the broader cryptocurrency market. Famous crypto analyst Marzell identified $1.24 as a key support level before this test. So far, price movements have supported this assertion. Each time it returns to the $1.24 range, buyers defend it.

The repeated buying is notable considering the backdrop of XRP's decline. After hackers stole $6.3 billion worth of assets from Binance on October 29, XRP fell 4.2% in 24 hours. This incident triggered a sell-off across the cryptocurrency market and raised concerns about exchange security. During the sharp drop, XRP temporarily fell below $1.24. The market downturn also pushed leveraged traders out of their positions. Long position liquidations on Friday amounted to $16 million. Nevertheless, when XRP approached $1.24, buying returned.

Although buyers defended $1.24, XRP has not been able to rise above $1.27. Each time it recovered from the support level, it encountered selling pressure around this area. XRP is caught between a floor defended by buyers and a ceiling maintained by sellers. The repeated movements between $1.24 and $1.27 have created a narrow trading range. Traders call this price action a coil, where the market moves within a tightening range before deciding on a direction. However, it is not yet clear whether a breakout will favor buyers or sellers. XRP is also facing resistance from three Exponential Moving Averages (EMAs): the 20-day ($1.32), 50-day ($1.35), and 100-day ($1.32). The current price is below these lines. A temporary rise above $1.27 alone does not confirm a breakout. Buyers need to push the price above $1.27 to confirm a closing price and maintain it above that level.

Marzell stated that if a breakout above $1.27 is confirmed, XRP could head towards $1.30. He noted that $1.30 is an important extension zone, and sustained movement above the current resistance could give XRP more room to rise. The Binance incident could also improve market sentiment. Binance promised to cover all losses from the incident, temporarily suspended deposits and withdrawals during a security review, and froze approximately $3 billion in stolen assets. Conversely, if buyers fail to hold $1.24, XRP could fall further. If this support level breaks, $1.20 becomes the next area of focus, where buy orders are likely to be concentrated. If XRP also loses $1.20, the decline could extend to $1.18, a potential liquidation target.

[Key Article Summary]

-XRP saw buying interest three times at $1.24 in two days but failed to rise above $1.27, resulting in a narrow trading range of $1.24-$1.27.

-The 20-day, 50-day, and 100-day Exponential Moving Averages ($1.32, $1.35, $1.32) act as resistance, and a confirmed closing price above $1.27 is the condition for a breakout.

-Marzell pointed to $1.30 if $1.27 breaks out, and $1.20 and $1.18 if $1.24 is lost.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*